Senator FAULKNER (6:45 PM) —Thank you for that guidance, Madam Temporary Chair.

Senator Harradine —I would like some clarification. On sheet 1244 it says replacement amendment 4 on sheet 1231. So we are looking at 4 on sheet 1224 and amendments 5 and 6 on sheet 1231.

The TEMPORARY CHAIRMAN —That is correct, Senator Harradine.

Senator FAULKNER —I seek leave to move the amendments together.

Leave granted.

Senator FAULKNER —I move:

(R4) Schedule 1, page 9 (after line 27), after item 44A, insert:

44B After section 306

Insert:

306A Certain loans not to be received

(1) It is unlawful for a political party or a State branch of a political party or a person acting on behalf of a political party or a State branch of a political party to receive a loan of $1,500 or more from a person or entity other than a financial institution unless the loan is made in accordance with subsection (3).

(2) It is unlawful for a candidate or a member of a group or a person acting on behalf of a candidate or group to receive a loan of $1,500 or more from a person or entity other than a financial institution unless the loan is made in accordance with subsection (3).

(3) The receiver of the loan must keep a record of the following:

(a) the terms and conditions of the loan;

(b) if the loan was received from a registered industrial organisation other than a financial institution:

(i) the name of the organisation; and

(ii) the names and addresses of the members of the executive committee (however described) of the organisation;

(c) if the loan was received from an unincorporated association:

(i) the name of the organisation or association; and

(ii) the names and addresses of the members of the executive committee (however described) of the association or organisation;

(d) if the loan was paid out of a trust fund or out of the funds of a foundation:

(i) the names and addresses of the trustees of the fund or of the foundation; and

(ii) the title or other description of the trust fund, or the name of the foundation as the case requires; or

(e) in any other case—the name and address of the person or organisation.

(4) For the purpose of subsection (2), a person who is a candidate in an election is taken to remain a candidate for 30 days after the polling day in the election.

(5) For the purpose of subsection (2), persons who constituted a group in an election are taken to continue to constitute the same group for 30 days after the polling day in the election.

(6) Where a person receives a loan that, by virtue of this section, it is unlawful for the person to receive, an amount equal to the amount or value of the loan is payable by that person to the Commonwealth and may be recovered by the Commonwealth as a debt due to the Commonwealth by action, in a court of competent jurisdiction, against:

(a) in the case of a loan to or for the benefit of a political party or a State branch of a political party:

(i) if the party or branch, as the case may be is a body corporate—the party or branch, as the case may be; or

(ii) in any other case—the agent of the party or branch, as the case may be; or

(b) in any other case—the candidate or a member of the group or the agent of the candidate or of the group, as the case may be.

(7) In this section:

financial institution means an entity which carries on a business that consists of, or includes, the provision of financial services or financial products and which is:

(a) a bank; or

(b) a credit union; or

(c) a building society; or

(d) any other entity registered under the Australian Financial Institutions Commission Codes as a special service provider.

Note: See section 111AZB of the Corporations Law for the Australian Financial Institutions Commission Codes.

loan means:

(a) an advance of money; or

(b) a provision of credit or any other form of financial accommodation; or

(c) a payment of an amount for, on account of, on behalf of or at the request of, an entity, if there is an express or implied obligation to repay the amount; or

(d) a transaction (whatever its terms or form) which in substance effects a loan of money.

[after section 306—loans and associated entities]

(5) Schedule 1, page 9 (after line 27), after item 44B, insert:

44C Subsection 314AA(1) (definition of amount )

After "gift", insert ", loan or".

[section 314AA—loans and associated entities]

(6) Schedule 1, page 10 (after line 2), after item 46, insert:

46A After paragraph 314AC(3)(b)

Insert:

(ba) if the sum was received as a result of a loan—the information required to be kept under subsection 306A(3), or the name of the financial institution, as the case requires; or

[section 314AC—loans and associated entities]

This is obviously a very important issue. It is an issue that has arisen from a lot of public concern and many concerns raised in the parliament, particularly by me on behalf of the opposition in relation to what I believe has been a mechanism used by the government to subvert the disclosure provisions of the Electoral Act.

What our amendments are about—the first three that have been accepted by the committee and these three—is simply this: we want to end once and for all what we believe is the vehicle by which the Liberal Party has exploited any real or apparent loopholes in the Electoral Act. The vehicle that is being used, the Greenfields Foundation, has meant that one of the major political parties in this country, the majority party in this coalition government, has been able to dodge full and transparent disclosure. I want to say this, being as generous as I can in the circumstances: the government did take some steps to address recommendation 10 of the March 1998 report of the AEC into funding and disclosure by broadening the investigative powers of the AEC in dealing with and determining whether or not an organisation is an associated entity.

We found out, as senators would know, during questioning of the Australian Electoral Commission at Senate estimates hearings last week, that the AEC recently utilised these powers for the first time to serve notice on the Greenfields Foundation on 15 January 1999. While those particular government amendments were sufficient for the purpose of broadening the investigative powers of the AEC in pursuing suspected associated entities, they have not gone far enough in relation to the crucial issue of closing the loophole in the legislation. That is what the opposition wants to do.

Let me explain to the committee what our amendments here are about. Firstly, they tighten the definition of `associated entity'. Secondly, they close the loophole in the event of the loan being given ultimately becoming a gift. Thirdly, they prevent loans from being received from anyone other than a registered financial institution unless certain information, such as terms and conditions of the loan, are disclosed. I might continue arguing this very strong case tomorrow.

Progress reported.